§ 6.04. Borrowing

(1) Temporary revenue deficiencies. The city may borrow to meet current obligations when temporary revenue deficiencies occur. However, the amount borrowed shall not exceed one-fourth of one percent of the assessed value of all taxable property within the city, as determined by the most recent assessment; and the term of the loan shall not exceed one year. The loan may be extended as necessary until fully paid, but no extension shall exceed one year.

(2) Financing for projects. The city may borrow money to finance any project not prohibited by law and may pledge city assets to repay such indebtedness, subject to the following limitations:

(a) Any proposal to pledge ad valorem taxes for debt repayment shall require approval by the city's voters.

(b) The city's total outstanding indebtedness, including the proposed amount, shall not exceed five percent of the assessed value of all taxable property within the city, as determined by the most recent assessment.

(Ord. No. 1019, § 1, 11-3-09)